DHS awards $65.7M for TVS System O&M and Development to Peraton Inc

Contract Overview

Contract Amount: $65,739,621 ($65.7M)

Contractor: Peraton Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-09-12

End Date: 2020-05-11

Contract Duration: 242 days

Daily Burn Rate: $271.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SOFTWARE O&M AND DEVELOPMENT FOR TVS SYSTEM FOR CBP/PSPD

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $65.7 million to PERATON INC. for work described as: SOFTWARE O&M AND DEVELOPMENT FOR TVS SYSTEM FOR CBP/PSPD Key points: 1. Contract awarded to Peraton Inc. for software O&M and development. 2. The contract value is $65.7 million. 3. The service falls under Computer Systems Design Services (NAICS 541512). 4. Awarded under full and open competition. 5. The contract duration is 242 days.

Value Assessment

Rating: fair

The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The total award value of $65.7 million for a 242-day period suggests a significant per-day expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. However, the Time and Materials pricing structure may limit the effectiveness of competitive bidding in controlling final costs.

Taxpayer Impact: Taxpayer funds are being used for essential software operations and development for CBP/PSPD. The cost-effectiveness depends on the successful delivery of services within the awarded budget.

Public Impact

Ensures continued operation and enhancement of the TVS system for U.S. Customs and Border Protection. Supports critical border security and trade facilitation functions. Potential impact on efficiency and effectiveness of CBP operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar IT O&M and development contracts vary widely based on system complexity and scope.

Small Business Impact

The contract was awarded to Peraton Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.

Oversight & Accountability

The Department of Homeland Security, through U.S. Customs and Border Protection, is responsible for overseeing this contract. Standard oversight mechanisms for IT service contracts should be in place.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-homeland-security, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $65.7 million to PERATON INC.. SOFTWARE O&M AND DEVELOPMENT FOR TVS SYSTEM FOR CBP/PSPD

Who is the contractor on this award?

The obligated recipient is PERATON INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $65.7 million.

What is the period of performance?

Start: 2019-09-12. End: 2020-05-11.

What specific enhancements or O&M activities were included in this contract, and how do they align with CBP's strategic technology goals?

The contract details for specific enhancements and O&M activities are not provided in the data. However, the TVS system likely supports critical functions for CBP, such as trade processing, cargo screening, or border enforcement. Understanding the alignment with strategic goals would require access to the contract's statement of work and CBP's technology roadmap.

Given the Time and Materials pricing, what measures were in place to control costs and ensure value for money throughout the contract period?

While the data indicates a Time and Materials (T&M) contract, it doesn't specify the cost control measures. Typically, T&M contracts include labor hour limitations, fixed-price components for specific tasks, or stringent oversight to monitor hours and rates. The effectiveness of these measures would depend on the government's project management and surveillance.

How does the $65.7 million award for a 242-day period compare to industry benchmarks for similar software development and O&M services?

The award of approximately $65.7 million over 242 days equates to roughly $271,651 per day. This daily rate is high and would need to be benchmarked against specific IT services, labor categories, and the complexity of the TVS system. Without more detailed information on the scope of work and labor mix, a definitive comparison to industry benchmarks is challenging.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,739,621

Exercised Options: $65,739,621

Current Obligation: $65,739,621

Subaward Activity

Number of Subawards: 126

Total Subaward Amount: $38,207,406

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC14DE2035

IDV Type: IDC

Timeline

Start Date: 2019-09-12

Current End Date: 2020-05-11

Potential End Date: 2020-05-11 16:38:56

Last Modified: 2023-07-17

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